US stocks moved higher on Friday midday, with the Dow Jones Industrial Average gaining over 300 points. Oil prices retreated following a report suggesting Pakistan is considering facilitating new peace negotiations between the United States and Iran, sparking investor hopes for a revival of stalled talks between the two nations.
The Dow rose 358.76 points, or 0.69%, to 52,070.41. The Nasdaq Composite added 34.39 points, or 0.14%, to 25,172.09. The S&P 500 climbed 45.42 points, or 0.61%, to 7,453.72.
Citing three Pakistani sources, a media report stated that Pakistan is exploring pathways to restart US-Iran negotiations after other countries initiated the push. The report indicated that preliminary discussions took place during a visit by Iranian Interior Minister Eskander Momeni to Islamabad this week. Momeni met with Pakistani government leaders and Army Chief General Asim Munir during his visit.
However, sources noted that significant obstacles remain for restarting the US-Iran talks.
Oil prices fell following the report. Brent crude futures, which had breached the $100 per barrel mark earlier this week for the first time since late May, retreated to around $95, a drop of 4%. US West Texas Intermediate crude futures also fell 4%, trading above $88 per barrel.
Earlier this week, US President Donald Trump stated that he would soon decide whether to launch a "massive attack" on Iran, as the Middle East conflict expanded to a new front in the Red Sea. In an interview with Axios, Trump indicated that any proposed strike would be more forceful than actions seen in the war so far, asserting that Iran had "not suffered enough."
"I'm considering a massive attack. Bigger than anything we've seen. I'm close to making a decision. We have everything prepared," Trump said in the interview.
Over the past two weeks, US forces have conducted heavy strikes on Iranian targets, with Central Command completing its 13th consecutive night of airstrikes.
"There is a potential for a real economic consequence in the Middle East in terms of controlling the flow of hydrocarbons and the global economy's ability to respond," said Bill Northey, investment director at US Bank Asset Management Group.
While Northey believes interest rates will remain unchanged next week given the recent surge in oil prices, he added, "Federal Reserve Chair Kevin Warsh has been very clear about returning US inflation to target levels and making that a policy choice. We take him at his word."
Shares of Intel fell 4%, giving back earlier gains, despite the chipmaker reporting second-quarter results that exceeded Wall Street expectations. Other chip stocks also declined, with Broadcom and Advanced Micro Devices each dropping 2%. Micron Technology fell 6%, and the VanEck Semiconductor ETF (SMH) retreated 2%.
"I think you're just seeing a lot of money flowing in and out of that sector on a daily basis," Northey said. "But when you step back and look at where strong earnings growth is, where it exists in this environment, and what drives expectations for 2026 and 2027, those sectors are primary beneficiaries."
"We just need to understand there will be some emotional volatility around that sector and its surroundings," he continued.
The Dow and S&P 500 are still on track for a weekly decline, though both are down only 0.1%. The Nasdaq Composite is expected to fall more than 1% for the week.
Comments